(National Youth Movement for the West Philippine Sea) — Prime Energy Resources Development B.V., in a news release on May 30, 2023, praised itself for signing an agreement with the Abu Dhabi National Oil Company Global Trading or AGT to “supply condensate to be produced at the Malampaya Gas Field.”
Prime Energy said the agreement with AGT “establishes our force in the global petroleum industry” and “positions Prime Energy as a petroleum company with expertise and business practices that meet global industry standards.”
Prime Energy, formerly Shell Philippines Exploration, is owned by Enrique Razon III, the Filipino multi-billionaire who also owns International Container Terminal Services Inc. among other companies.
For people outside the oil business, this may sound like an achievement attesting to Prime Energy’s status as a legitimate oil company.
Prime Energy was recently involved in an allegedly illegal purchase of a 45% participating interest of Shell in the Malampaya Gas Field.
Illegal, because it was not technically qualified prior to the deal as required by law and common sense. As such, Prime Energy has scrambled to appear qualified by highlighting activities such as this one, which is simply the sale of gas, not involving any kind of petroleum exploration or production experience or expertise. AGT is a trading company, not an oil company. It is simply the trading arm of Abu Dhabi’s national oil company staffed by sales people. No technology is needed there.
Prime Energy, which obtained the Malampaya interest from SPEX, Shell Philippines’ subsidiary, hired the “expertise,” including its general manager Donnabel Cruz, after the fact. Meaning, after Department of Energy Secretary Raphael Lotilla announced that it had vetted that Prime Energy was technically qualified. Wrong again.
The technical and financial qualifications required by law (Presidential Decree 87) for an oil service contractor in the Philippines are specifically defined as possessing the technical expertise and extensive experience in the petroleum industry which Prime never had prior to the Malampaya deal.
The whole process reeks strongly of the fishy smell of a scam. Prime Energy was even granted an extension of Service Contract 38 for another 15 years by President Ferdinand Marcos Jr.
The National Youth Movement for the West Philippine Sea or NYMWPS, a peaceful, non-partisan and transglobal organization that advocates for the preservation of Philippine sovereignty and territorial integrity, maintains its position that the sale of Shell and Chevron stakes in the Malampaya to Dennis Uy’s Udenna and later, Uy’s Shell shares sale to Enrique Razon’s Prime Infrastructure were not properly processed in accordance with the law; that both companies of Razon and Uy have no technical expertise as mandated by P.D. 87, and therefore, illegal and should be considered void; and that the deals including the grant of 15 years extension to service contractors Razon and Udenna were lopsided in ensuring humongous losses to the government and the Filipino people.
“Hoping against hope, we urge President Ferdinand Marcos Jr. to rescind the contract extension now,” NYMWPS stated.
